Agenda item

The above Cabinet report is on the Forward Decision List for consideration by Cabinet on 2 February 2016.  The Panel is requested to consider the report and make any appropriate recommendations to Cabinet.

The LDF Manager presented the Cabinet report which set out the CIL draft charging schedule.  He referred to the Viability Assessment which set out the justification for the charging and the various rates of CIL which could be applied.  He explained that the maps contained within the report pertained to strategic sites and showed the different levels of CIL proposed to be charged within the area.

He reminded those present that Parishes with Neighbourhood Development Plans would receive a higher percentage of CIL than those without a Plan unless the area was within a zero level area.

The Chairman thanked the LDF Manager for his report and invited questions and comments from the Panel, as summarised below.

In response to a question from Councillor Moriarty, the LDF Manager explained that Appendix 3 of the report showed a map of the different CIL levels which would be charged in each area.

Councillor Smith referred to the different levels of CIL proposed to be charged in the King’s Lynn area and asked if the different levels charged would deter development in areas where the CIL level was higher.  The LDF Manager explained that the boundary recommendations had been created by the Consultants and the CIL levels proposed reflected the land value and sale value of homes in the different areas.  He explained that there was a limit on how much properties could be sold for in certain areas.

Councillor Westrop accepted that there were limited values to how much properties could be sold for in certain areas, but asked what would happen if market conditions changed.  The LDF Manager confirmed that levels could be reviewed.  He referred to Appendix 1 which set out what CIL money could be used for.  Information had been used from Strategic Economic Plans to set out what would be required to cope with additional housing created in the Borough and included improved infrastructure, education and health.  He explained that political judgement would be required on how CIL contributions would be spent.  He clarified that the CIL regulations stated that CIL monies had to be spent and could not be used to achieve a surplus.

The LDF Manager confirmed that the CIL levels proposed were based on Land Registry data and selling prices.  The figures proposed by the Consultant had been tested and additional research conducted.  He explained that the levels proposed should stand for two or three years before a review would be required which would be presented to Members for consideration.

Councillor Bubb asked if consideration had been given to areas which were liable to flooding.  The Vice Chairman, Councillor Miss Bambridge referred to the Waterfront area in King’s Lynn and asked how urgent sea defence works were in this area.  The LDF Manager explained that the report outlined the infrastructure required to enable development to take place.

In response to a question from Councillor Moriarty, the LDF Manager explained that some Local Authorities had already been through the examination process.  He explained that the CIL proposals would be examined and challenged by the Inspector.  It was possible that the CIL charging schedule could come into effect in 2016 if no problems were encountered.  Once in place, developers would be liable to pay CIL rates and there was not a get out clause.

The Portfolio Holder for Environment, Councillor Long referred to the references to flood defences.  He explained that a lot of improvements had been made to flood defences in the last couple of years and additional work could be required if there was development in areas at risk of flooding.  If CIL was not available there may not be funds available to carry out the required works to enable development land to be unlocked.  CIL could also be used as an enabler for grants and funding.

In response to a question from Councillor Westrop, the LDF Manager outlined the Governance arrangements.  He explained that all income and expenditure would need to be accounted for.  Work would be carried out to ensure that developers knew exactly what they would be required to pay and their obligations.  A CIL Board could be created to look at what the funds could be spent on.  The Chief Executive explained that changes would be required to the Councils Scheme of Delegation and a report would be presented to Members for consideration at the appropriate time.

In response to a question from Councillor Squire, the LDF Manager explained that the calculations as set out in the report showed how the values worked and he did not feel that the levels would affect small scale developers more than larger developers.  He reminded those present that anyone could come along to the Public Examination to challenge the figures proposed.

In response to a question from the Vice Chairman, Councillor Miss Bambridge, the LDF Manager explained that education had been included in the list on what CIL funds could potentially be spent on.  Discussions would be required with Norfolk County Council, but it would ultimately be up to Members to decide where to spend CIL money.

Councillor Smith referred to page 22 of the report which outlined CIL liabilities.  He asked what provision would be made for developers having to pay within the commencement date of development as it could be difficult for them to raise the required funds upon commencement of development.  The LDF Manager explained that the liability for CIL kicked in on commencement of development, but an instalment policy would be introduced.  He explained that developers would need to build CIL into their development costs.

In response to a request from Councillor Smith, the LDF Manager agreed to check through the report to ensure that all figures were included before the proposals were sent for examination.

RESOLVED: That the Environment and Community Panel support the recommendations to Cabinet as set out below.

That Cabinet agreed to recommend to Council that it:

1. Undertakes a formal consultation on a Draft Community Infrastructure Levy (CIL) Charging Schedule.

2. Proceeds to formal Examination of the Draft Charging Schedule.

3. For the purposes of the consultation the draft CIL rates will be those outlined in section 2.4.3 of this Report.

4. Authorises the Executive Director for Planning and Environment in consultation with the Leader of the Council to prepare the specific consultation documentation as required, based on the Draft Charging Schedule and the information in Appendices 1,2,3 and the consultant HDH’s Viability Assessment (January 2016).